Dairy Queen is putting an AI chatbot in its drive-thrus

· Source: The Verge · Field: Business & Management — Operations & Process Management, Corporate Strategy & Leadership, Sales & Commercial Development · Depth: Fundamental Awareness, quick

Summary

Dairy Queen is deploying AI-powered chatbots from Presto in dozens of its drive-thrus across the US and Canada, following a test last year. The initiative aims to accelerate service and encourage customers to increase order size. Presto's chatbot reportedly achieves 90 percent order accuracy, and Dairy Queen's executive vice president of IT, Kevin Baartman, noted its performance during a free ice cream cone promotion. This rollout places Dairy Queen among other fast-food chains experimenting with AI, including Wendy's (with Google AI), McDonald's (briefly with IBM), and Burger King, which is testing an AI assistant for employees. Reports from 2023 indicated that Presto's AI drive-thrus might be augmented by human workers in locations like the Philippines.

Key takeaway

For AI Product Managers evaluating customer service automation, consider the dual benefits of AI in both efficiency and revenue generation, as demonstrated by Dairy Queen's drive-thru deployment. Your strategy should account for potential human-in-the-loop requirements for robust performance, and proactively address customer experience to avoid frustration, as seen with Taco Bell's reevaluation.

Key insights

Fast-food chains are widely adopting AI chatbots to enhance drive-thru efficiency and boost sales.

Principles

Method

Fast-food chains are implementing AI chatbots at drive-thrus to take orders, aiming to improve speed and upsell. Some systems are augmented by remote human operators for accuracy.

In practice

Topics

Best for: AI Product Manager, Product Manager, Entrepreneur, Executive, Operations Professional, General Interest

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Editorial summary, takeaway, and curation by AIssential. Original article published by The Verge.